TORONTO, ONTARIO -- (Marketwire) -- 09/08/08 -- PDX Resources Inc. (formerly Pelangio Mines Inc.) (TSX: PLG) ("PDX" or the "Company") is pleased to announce that at 12:01 a.m. Calgary time (the "Effective Time") on September 6, 2008 (the "Effective Date") it completed the previously announced spin-off by way of a plan of arrangement (the "Arrangement") of all of its assets, other than 19 million common shares ("Detour Shares") of Detour Gold Corporation and certain working capital, to Pelangio Exploration Inc. ("Exploration"). In connection with the Arrangement, the Company has changed its name from "Pelangio Mines Inc." to "PDX Resources Inc.". PDX's Common Shares will continue to trade on the TSX under the symbol "PLG".
Pursuant to the Arrangement, all existing Pelangio shareholders of record as of the Effective Time on the Effective Date were automatically issued, without further payment or consideration, one common share in Exploration ("Exploration Shares") for each common share of Pelangio held as of the Effective Time. For further details, please see the press release dated August 26, 2008.
The Company's assets now consist of 19 million Detour Shares and $500,000 in working capital (the "Detour Property"). The Arrangement was completed to address the discount in PDX's share price prior to completion of the Arrangement, which did not accurately reflect its holding of 20 million Detour Shares, and to improve the market's valuation of the other properties PDX held prior to completion of the Arrangement, in particular its interests in its Obuasi property in Ghana (the "Obuasi Property"). The Company will continue to hold its Detour Shares for investment purposes, and will review its alternatives as appropriate. Exploration's assets consist of all of Pelangio's property other than the Detour Property, and include all of Pelangio's interests in the Obuasi Property and other Canadian mineral properties and one million Detour Shares.
Exploration has received conditional listing approval from the TSX Venture Exchange (the "TSX-V") for the listing of the Exploration Shares, subject to complying with the conditions of listing imposed by the TSX-V. The Exploration Shares will trade under the symbol "PX" on the TSX-V and trading is expected to commence on or about September 10, 2008.
As soon as practicable, registered shareholders of the Company as of the Effective Time on the Effective Date will be sent share certificates representing the Exploration Shares that such shareholders are entitled to receive, as set out above.